Pakistan’s stock market has suffered a steep decline, with the benchmark KSE-100 Index plunging 9.7% over the past four trading sessions, as escalating military tensions with India rattled investors and triggered a wave of panic selling.
Trading was halted for an hour on Thursday at the Pakistan Stock Exchange after the benchmark index tumbled 6.3%, according to an exchange notification. The halt followed reports that multiple drones were shot down over major cities including Karachi and Lahore, intensifying concerns of a wider conflict between the nuclear-armed neighbours.
Thursday’s steep selloff came on the heels of a dramatic 6,500-point plunge on Wednesday, when the KSE-100 opened sharply lower and eventually closed down 3.1%. The slide began after India launched “Operation Sindoor,” targeting what it described as terrorist infrastructure inside Pakistan. The military action came in response to the deadly Pahalgam attack in Indian Kashmir that killed 26 civilians in late April.
Indian armed forces targeted air defence radars and systems at a number of locations in Pakistan on Thursday, the government said in a statement. The Pakistan military said that it had shot down 25 Indian drones.
The turmoil on the KSE 100 also spilled over into Pakistan’s international bond markets. The 2036 maturity suffered the biggest loss among the country’s dollar bonds, falling more than 1 cent to be bid at 73.8 cents on the dollar, according to Tradeweb data.
In contrast to Pakistan’s turmoil, India’s benchmark Sensex index was trading only slightly lower on Thursday, down around 250 points. Analysts noted that the latest round of hostilities is likely to weigh more heavily on Pakistan’s fragile economy and already subdued investor sentiment.
The current crash also echoes a similar episode last month, when Pakistan’s markets plummeted over 8,700 points following trade tariff announcements by then-U.S. President Donald Trump, prompting another brief trading halt.
With India’s Defence Minister Rajnath Singh stating that the military operation was ongoing, analysts warned that further volatility in Pakistan’s markets is likely in the coming days.
Also read | Sindoor effect! Trading in Pakistan's Karachi Stock Exchange halted after 7% crash
(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of Economic Times)
Trading was halted for an hour on Thursday at the Pakistan Stock Exchange after the benchmark index tumbled 6.3%, according to an exchange notification. The halt followed reports that multiple drones were shot down over major cities including Karachi and Lahore, intensifying concerns of a wider conflict between the nuclear-armed neighbours.
Thursday’s steep selloff came on the heels of a dramatic 6,500-point plunge on Wednesday, when the KSE-100 opened sharply lower and eventually closed down 3.1%. The slide began after India launched “Operation Sindoor,” targeting what it described as terrorist infrastructure inside Pakistan. The military action came in response to the deadly Pahalgam attack in Indian Kashmir that killed 26 civilians in late April.
Indian armed forces targeted air defence radars and systems at a number of locations in Pakistan on Thursday, the government said in a statement. The Pakistan military said that it had shot down 25 Indian drones.
The turmoil on the KSE 100 also spilled over into Pakistan’s international bond markets. The 2036 maturity suffered the biggest loss among the country’s dollar bonds, falling more than 1 cent to be bid at 73.8 cents on the dollar, according to Tradeweb data.
In contrast to Pakistan’s turmoil, India’s benchmark Sensex index was trading only slightly lower on Thursday, down around 250 points. Analysts noted that the latest round of hostilities is likely to weigh more heavily on Pakistan’s fragile economy and already subdued investor sentiment.
The current crash also echoes a similar episode last month, when Pakistan’s markets plummeted over 8,700 points following trade tariff announcements by then-U.S. President Donald Trump, prompting another brief trading halt.
With India’s Defence Minister Rajnath Singh stating that the military operation was ongoing, analysts warned that further volatility in Pakistan’s markets is likely in the coming days.
Also read | Sindoor effect! Trading in Pakistan's Karachi Stock Exchange halted after 7% crash
(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of Economic Times)
You may also like
NHS nurse wrongly suspended after patient claimed she was having his baby wins HUGE payout
Aldenhoven fire: Multiple children injured after horror blaze breaks out in circus tent
Thousands of mortgage holders could save nearly £350 a year following interest rate cut
No need to eat eggs! This Desi dal is the real 'protein bomb', at the forefront in terms of strength
PSG boss Luis Enrique makes 'farmers league' joke after beating Arsenal in Champions League
